The Other Side of the Car Insurance Coin
Of all the questions car owners have to deal with, “How much is car insurance?” is probably the trickiest. Buying a car is already a big thing. Cars cost a lot, and most people have to use a car loan or a company loan to secure the purchase. Car maintenance is another thing, because you can’t just buy a car and not take care of it. Regular engine check-ups, tire rotations, even your occasional car wash – they all cost something. Add to that the rising price of gasoline, and you’re set for life. With all these car-related expenses, it’s no surprise that most car owners are doubtful about, if not totally against, the idea of car insurance. Another added expense to an already long list of expenses? No thank you.
Car insurance, like all other types of insurance, is basically protection against the unexpected. As drivers, we have full control over most of the conditions we find ourselves in. Most of the time, we know what to expect. We have control over how fast we’re going, or what route to take on our way to our destination. We have control over how prepared and well-maintained our car is. More importantly, we have control over how we’re driving. We can choose to be defensive, not reckless. We can certainly control our tempers, and we can certainly make sure that we follow all the rules of the road. With all this in mind, what then, are we protecting ourselves against?
As responsible and conscientious car owners and drivers, we can certainly prevent unexpected things from happening. But to be perfectly honest, there’s that tiny margin of possibility for the unexpected to happen, and it’s a tiny margin that will not go away. We can control how we drive, but we can’t control how others do. We can control how prepared or well-maintained our car is, but we can’t control the conditions of the road, much less the weather. Reckless drivers, crossing animals, thunderstorms, flash floods – these are things we have no control over, and they have a tendency of occurring when we least expect them to. This is where car insurance comes in.
The truth is, it’s all a matter of perspective. We always need to see both sides of the coin to decide, and in the case of car insurance, the other side deserves to be seen in a clearer manner. If we view car insurance as an annoying expense that’s mostly just a necessary evil, then that’s what it will always be. As we begrudgingly make those monthly payments, we will always do so with heavy hearts. However, if we look at is an investment, as a safeguard, as a “life vest” that will keep our car from drowning in the rare but possible case that it sinks, then that’s an entirely different story. As we make those monthly payments we’ll do so with smiles on our faces, because we know we’re saving ourselves from an even bigger expense and an even bigger headache, just in case the unexpected does happen.
The Cheapest Cars to Insure for Young Drivers
If you’re young and own a car, getting it insured can be a nightmare. Young drivers are seen as high risk drivers due to their lack of experience behind the wheel and as a result their premiums are sky high. Some young people are lucky enough to have parents who are willing to insure their car for them possibly saving them thousands of pounds in insurance every year. Others on the hand have to swallow the bitter pill and pay for their own insurance. Or even worse, decide to drive without insurance at all.
The average cost of insurance for a young male driver is a £4,000 per year and for a young female driver about £2,000 so if you have to insure your own vehicle it’s important to find the cheapest deal out there. What deals you get offered are dependent on how young you are and the cost of the car but also what type of vehicle you own. So it’s important to make sure you own the right car in order to get the best deals. If you’re between 17-18 year old and the car cost between £600 and £10,000, these are the top five cars you should choose to get the best possible insurance deals:
1. The new Ford Ka is the cheapest car to insure for young drivers. Average premium is around £1,650 a year. The older model Ford Ka is the second cheapest car for young people to insurance with an average cost of £1,780. You can get an older model for as little as £300 but the 2011 model will cost you from £7,400.
2. Peugeot 107 is the third cheapest car to insure for 17-18 year olds at the cost of £1,994 per year. And buying one used through a dealership you should expect to pay around £2,600 for a 2006 model. Interestingly enough it’s the same car as the Citroen C1 but £300 cheaper than the Citroen to insure.
3. The fourth cheapest car to insure is the very small Daewoo Matiz which is mainly a city car. Average cost of insurance was quoted at £2,258.
4. But if you want something cooler than what has been listed above, the new Mini One might be just the thing. Average insurance cost is £2,269 and a 2003 model will cost you around £2,500 though a dealer.
So if you have to pay for your car insurance yourself, make sure you choose a car you can afford to insure and perhaps try out one of the above. To check out both the new and the old model Ford Ka, Kent is one region where you’ll find several dealerships.
Auto Insurance – Adhering To Basics
Adhering to basics would help you choose the right auto insurance plan that suits your needs perfectly. Weigh your family’s specific circumstances, including your risk tolerance and budget, against the options available, and decide on the plan which fits in the bill.
None of us would like to think that our car is as vulnerable to accidents as other cars. However, the truth is, mishaps never ask before hitting. You HAVE to arrange for adequate monetary coverage for any possible loss.
Financial product that provides protection for your car against any possible loss is auto insurance. You need to get the right kind of auto insurance at the time you buy it. Ponder what kind of policies are available and which work best for you. Take your time going through the options, weigh them and decide on one that suits you the most.
Buy insurance from a carrier that has the track record of settling the claims in customer friendly manner. It is the key factor while deciding on a service provider. Opt for a carrier that has a proven record of proper servicing of the claims. Ask people who have filed claims with the carriers in the past. Their feedback would help you deciding about dispensing of claims by a carrier.
An auto insurance must provide coverage to body injuries as well as vehicle damage. There are packages that provide for the costs of repairing or replacing the vehicle as well. Such packages are a bit costlier but if the damage is serious, these could come in handy. The cover must be sufficient to refund the complete cost of the vehicle at the time its purchase.
When deciding on various auto insurance options, the first step is to know the basics, specially if you are new to it. There are several financial terms used on insurance documents and it would help if you know what they exactly mean. For instance, in any regular auto insurance document, you would find terms such as Deductible Amount, Emergency Road Service, Gap Insurance, Endorsement, Liability Coverage, etc. If you are well-versed with these terms, you would know exactly what the policy is offering. You would be able to better comprehend the representatives of the insurance carriers and weigh various options on the table.
Basic things provided under auto insurance are liability coverages (injuries to others and damage to property), coverage for damage to your own car, uninsured motorist coverages (when someone without insurance injures you) and medical expenses. There are various options available which vary with state and carrier.
There are two approaches to pick up an auto insurance plan – 1) Providing legal conformity and 2) Adequate financial cover. Some plans make you meet legal requirements but they do not necessarily provide you with adequate monetary cover. In event of any mishap, you will need to burn your own pocket to pay the expenses. On the other hand, plans with adequate coverage give you the peace of mind.
Auto insurance plan you choose must fit in your family’s specific circumstances, including your risk tolerance and budget. If are not very sure about it, you can visit independent auto insurance websites for information, discuss things with an insurance agent or call an insurance company directly. They will help you evaluate your needs and zero in on the right insurance plan.